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QUESTION 19 A preferred stock pays a $5.00 dividend. If the preferred stock sells for $43.50 with a flotation cost of $1.00, what is the
QUESTION 19 A preferred stock pays a $5.00 dividend. If the preferred stock sells for $43.50 with a flotation cost of $1.00, what is the cost of preferred equity? 12.296 O 11.2% 11.69 10.996 none of the above QUESTION 20 A firm has $450,000 of retained earnings available. The capital structure is 40% debt, 15% preferred equity and 4096 common equity. At what level of total funding will the firm run out of retained earnings? $82,000 $1,100,000 $820,000 $400,000 none of the above
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